The US Federal Reserve has cut its key interest rate to a target range of 3.50% to 3.75%, a reduction of a quarter percentage point (25 basis points). This decision was announced on December 10, 2025, and marks the third rate cut of 2025.

Current Target Range: 3.50% - 3.75%.
Previous Rate: 3.75%... - 4.00%.

The cut comes amid signs of a cooling labour market, including stalled job growth and higher unemployment, which prompted policymakers to provide an economic boost. +